These apps provide a range of services, including tax filing, optimization, tracking and more
In recent years, tax planning has evolved significantly with the advent of technology, particularly financial technology (fintech) applications. In 2024, fintech apps are revolutionizing how individuals and businesses manage their taxes, from providing easy-to-use platforms for filing returns to offering advanced tax optimization strategies. These apps are designed to simplify the often-complicated process of tax planning, making it more efficient, accessible, and personalized.
In this article, we will explore the best fintech apps for tax planning in 2024. These apps provide a range of services, including tax filing, optimization, tracking, and real-time advice, helping users minimize their tax liabilities and maximize deductions.
1. TurboTax: A Leader in Personal and Business Tax Planning
Overview: TurboTax has been a household name in tax planning for years, and in 2024, it remains one of the most popular tax apps. It is well-suited for both individuals and small business owners, providing a robust platform for filing federal and state taxes. TurboTax integrates with multiple financial accounts, helping users automatically import their financial data, reducing manual entry errors.
Key Features:
Guided Tax Filing: TurboTax offers a step-by-step filing process with clear instructions. Users are guided through various sections such as income, deductions, credits, and payments, ensuring they don’t miss out on potential savings.
Deduction Finder: The app scans for over 350 deductions and credits, optimizing users’ tax refunds or minimizing liabilities.
Live Assistance: TurboTax provides live help from certified tax professionals, offering personalized tax advice throughout the process.
Cryptocurrency Integration: Given the rise of crypto investments, TurboTax allows users to report their cryptocurrency gains and losses.
Why It’s Great for Tax Planning: TurboTax’s combination of ease of use, live support, and thorough deduction searches makes it a top contender for both individuals and businesses looking to optimize their tax situation.
2. QuickBooks Self-Employed: Perfect for Freelancers and Entrepreneurs
Overview: QuickBooks Self-Employed is designed for freelancers, independent contractors, and small business owners. The app simplifies tax planning for the self-employed by helping users track income, expenses, and deductions year-round. It is particularly valuable for those who need to handle quarterly tax payments and manage multiple streams of income.
Key Features:
Expense Tracking: Users can link their bank accounts and credit cards to track business-related expenses automatically. The app also categorizes expenses for tax purposes, saving users time during tax season.
Mileage Tracking: For freelancers and business owners who travel frequently for work, QuickBooks Self-Employed offers a mileage tracker that helps users claim mileage deductions.
Invoice Management: The app generates invoices and tracks payments, ensuring that users have a clear record of income, which is crucial for accurate tax filing.
Quarterly Tax Estimates: QuickBooks calculates quarterly tax estimates, helping self-employed individuals avoid underpayment penalties.
Why It’s Great for Tax Planning: QuickBooks Self-Employed is ideal for those with complex tax situations, particularly freelancers and entrepreneurs who need to track income and expenses across various channels.
3. TaxAct: Affordable Tax Filing for Individuals and Businesses
Overview: TaxAct is a cost-effective option for both individuals and businesses. It provides many of the same features as higher-priced competitors like TurboTax, making it an excellent choice for users looking to save money on tax preparation while still getting the essential tools needed for thorough tax planning.
Key Features:
Comprehensive Filing Options: TaxAct supports federal and state tax filings for individuals, self-employed individuals, and businesses.
Tax-Optimizer Tools: The app offers tools that analyze users’ financial situations to identify deductions and credits.
Step-by-Step Guidance: Like other major tax apps, TaxAct walks users through the filing process, ensuring that no deduction is overlooked.
Data Import: TaxAct allows users to import their previous year’s tax return data from other platforms, saving time on re-entering information.
Why It’s Great for Tax Planning: TaxAct is known for its affordability without compromising on functionality, making it a strong option for budget-conscious users.
4. H&R Block: Full-Service Tax Planning with Virtual and In-Person Assistance
Overview: H&R Block is a veteran in the tax preparation industry, offering both in-person and digital tax filing services. The app version of H&R Block brings the company’s tax expertise to users’ fingertips, allowing them to file taxes from the comfort of their home while still having access to professional help when needed.
Key Features:
Multiple Filing Options: H&R Block supports individual, small business, and complex tax filings.
Virtual Tax Professionals: The app provides access to tax professionals who can review returns before they are submitted. Users can also opt for in-person consultations.
W-2 Snap: Users can import their W-2 information by snapping a photo, simplifying data entry.
Audit Support: H&R Block offers audit support, guiding users through the process if they are audited by the IRS.
Why It’s Great for Tax Planning: H&R Block’s mix of DIY tax filing and professional guidance ensures users feel confident about their tax returns, making it a top choice for those who prefer hands-on assistance.
5. Wealthfront: Tax-Optimized Investment Management
Overview: While Wealthfront is primarily known as a robo-advisor for investment management, it excels in tax optimization for investment portfolios. The app uses sophisticated algorithms to manage taxable accounts, implementing strategies like tax-loss harvesting to help users minimize their tax liabilities.
Key Features:
Tax-Loss Harvesting: Wealthfront automatically sells losing investments to offset capital gains and reduce tax liabilities.
Tax-Efficient Allocation: The app ensures that tax-efficient assets are held in taxable accounts while tax-inefficient assets are placed in tax-advantaged accounts.
Retirement Planning: Wealthfront integrates tax planning with retirement planning, helping users maximize tax-advantaged retirement contributions.
529 College Savings Plans: Users can also manage tax-advantaged education savings accounts through Wealthfront.
Why It’s Great for Tax Planning: Wealthfront is ideal for investors who want to minimize their tax burdens through automated, tax-efficient portfolio management.
6. Keeper Tax: Specialized for Freelancers and Gig Workers
Overview: Keeper Tax is a fintech app built specifically for freelancers, gig workers, and independent contractors. The app excels in finding tax write-offs by automatically analyzing users’ bank transactions and flagging expenses that could be deductible.
Key Features:
Automated Expense Tracking: Keeper Tax scans users’ transactions to identify potential write-offs, ensuring that freelancers don’t miss out on any deductions.
Custom Tax Filing: The app helps users file taxes by generating a custom tax filing report based on their expenses.
Real-Time Tax Savings: Users can see their tax savings grow in real-time as Keeper Tax identifies deductible expenses.
Tax Expert Support: Keeper Tax also offers access to certified tax professionals who can assist with filing and tax advice.
Why It’s Great for Tax Planning: Keeper Tax is perfect for freelancers and gig workers who often miss out on deductions due to poor record-keeping or lack of awareness about potential write-offs.
7. TaxSlayer: Best for Fast and Easy Filing
Overview: TaxSlayer is designed for individuals and small businesses looking for a fast, straightforward tax filing process. It’s particularly useful for those with simple tax situations, though it also supports more complex returns.
Key Features:
Free Federal Filing: For basic tax filers, TaxSlayer offers free federal tax filing.
Deduction Finder: TaxSlayer automatically searches for deductions to maximize users’ refunds.
Tax Professional Assistance: Users have access to live chat and phone support from tax professionals.
Mobile Optimization: TaxSlayer’s mobile app is highly optimized, allowing users to complete their entire tax return on their phone.
Why It’s Great for Tax Planning: TaxSlayer’s easy-to-use interface and fast filing options make it a strong choice for users who want a no-frills, quick tax filing experience.
8. CoinTracker: Tailored for Cryptocurrency Investors
Overview: As cryptocurrency continues to grow in popularity, apps like CoinTracker have become essential for investors to track their crypto holdings and optimize their tax liabilities. CoinTracker helps users calculate capital gains and losses on their crypto transactions and prepares tax reports in compliance with IRS regulations.
Key Features:
Automatic Syncing: CoinTracker syncs with over 300 cryptocurrency exchanges and wallets, ensuring that users have a comprehensive view of their crypto holdings.
Capital Gains Calculation: The app calculates users’ capital gains and losses, allowing them to report crypto income accurately.
Tax Filing Integration: CoinTracker integrates with popular tax software like TurboTax, simplifying the tax filing process for crypto investors.
Portfolio Tracking: Users can also track the value of their cryptocurrency portfolios in real-time.
Why It’s Great for Tax Planning: CoinTracker is a must-have for cryptocurrency investors who need to accurately report their holdings and minimize tax liabilities in a highly volatile market.
9. Sprout: Simplified Tax Planning for Small Businesses
Overview: Sprout is a cloud-based tax app designed for small business owners and startups. It helps users track their expenses, manage payroll, and handle tax filing. Sprout’s focus is on streamlining tax planning for business owners who may not have dedicated accounting teams.
Key Features:
Expense Tracking: Users can categorize and track business expensesBest Fintech Apps for Tax Planning in 2024 (Continued)
Expense Tracking: Users can categorize and track business expenses, ensuring that they are correctly allocated for tax purposes.
Payroll Management: For businesses with employees, Sprout manages payroll taxes, ensuring compliance with tax laws.
Tax Filing Assistance: Sprout integrates with major tax filing software, helping small businesses file their taxes with minimal hassle.
Cash Flow Management: The app also helps businesses manage cash flow, a crucial aspect of ensuring that they have enough liquidity to cover tax payments.
Why It’s Great for Tax Planning: Sprout simplifies tax planning for small business owners, providing the tools needed to stay compliant and manage finances effectively.
10. FlyFin: AI-Powered Tax Optimization for Freelancers
Overview: FlyFin is an AI-powered tax app designed specifically for freelancers and independent contractors. The app uses artificial intelligence to automatically identify potential tax deductions from users’ financial data, ensuring that they maximize their savings.
Key Features:
AI-Driven Deduction Finder: FlyFin’s AI scans users’ financial transactions to identify deductible expenses, reducing the manual effort needed to categorize expenses.
1099 Tax Filing: FlyFin is tailored to freelancers who receive 1099 forms, helping them calculate their taxable income and deductions accurately.
Tax Advisor Access: Users can get advice from certified tax professionals directly through the app, ensuring that they get expert help when needed.
Quarterly Tax Payments: FlyFin helps users estimate and pay their quarterly taxes, avoiding penalties and interest.
Why It’s Great for Tax Planning: FlyFin is ideal for freelancers and independent contractors who want to maximize deductions and streamline the tax filing process.
11. ZenLedger: A Complete Solution for Cryptocurrency Taxes
Overview: ZenLedger is another crypto-focused fintech app that provides comprehensive tax services for cryptocurrency investors. It automatically imports transaction data from multiple exchanges and wallets, helping users calculate their capital gains and losses with ease.
Key Features:
Tax Reporting for Crypto: ZenLedger supports tax reporting for various crypto assets, including NFTs and DeFi activities.
Tax Loss Harvesting: The app identifies opportunities for tax-loss harvesting, helping users reduce their tax liabilities.
IRS Compliance: ZenLedger generates IRS-compliant tax forms, making it easy for users to file their returns accurately.
Multi-Platform Integration: The app integrates with over 500 crypto platforms, ensuring that all transactions are captured.
Why It’s Great for Tax Planning: ZenLedger is perfect for crypto investors who need to navigate the complex tax landscape of digital assets while maximizing their tax savings.
12. Empower: AI-Driven Tax and Financial Management
Overview: Empower is a personal finance app that helps users manage their money and taxes through smart AI-driven insights. The app combines budgeting, investment tracking, and tax optimization, offering an all-in-one solution for comprehensive financial planning.
Key Features:
Tax Optimization: Empower offers tax-optimization strategies tailored to users’ financial situations, including retirement planning, capital gains, and charitable deductions.
Expense Tracking: The app automatically tracks spending and categorizes expenses, helping users manage their finances in a tax-efficient way.
Investment Tax Planning: Empower integrates with investment accounts to help users minimize tax liabilities through strategies like tax-loss harvesting.
Personalized Financial Insights: The app uses AI to offer personalized advice on budgeting, saving, and investing, all of which contribute to better tax outcomes.
Why It’s Great for Tax Planning: Empower’s integration of personal finance management with tax planning makes it a powerful tool for individuals looking to optimize their overall financial health.
As we move into 2024, the fintech landscape continues to expand, providing a wide array of tools to help individuals and businesses navigate the complex world of tax planning. Whether you’re a freelancer, small business owner, or cryptocurrency investor, these fintech apps offer tailored solutions that can simplify the tax filing process, maximize deductions, and ensure compliance with tax laws.
From well-known platforms like TurboTax and QuickBooks to specialized apps like FlyFin and CoinTracker, there’s a fintech app for every type of taxpayer. These apps are designed to automate the most tedious aspects of tax preparation, making it easier than ever to manage your finances and plan for tax season.
By leveraging these cutting-edge apps, taxpayers in 2024 can not only reduce the stress of tax season but also ensure they are taking full advantage of every deduction and credit available to them. As tax laws continue to evolve and the complexity of financial management increases, these apps will remain indispensable tools for smart, effective tax planning.
